The European Commission has supported a request by the UK to apply reduced excise duty to biodiesel used as a road fuel. The UK is requesting a five-year derogation from a 1992 EU directive harmonising taxes on mineral oils with the aim of making biodiesel competitive.
Britain already levies a preferentially low-duty rate to biodiesel. Last June it had to apply for EU permission to continue this, after national consumption exceeded a trigger point below which the mineral oils directive does not apply.
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